In a bold move set to reshape regional trade dynamics, Pakistan’s National Logistics Corporation (NLC) has launched its new cargo service that slashes the journey time between China and the United Arab Emirates (UAE) from 30 days to just 10 via the Khunjerab Pass.
“The cargo transport service, operating under the Transports Internationaux Routiers (TIR) system, links neighboring China with the UAE via Pakistan, positioning Pakistan as a vital logistics hub connecting Asia to the Middle East and beyond.”
The inaugural shipment, a cargo of electronic goods, departed from Kashgar, China, on its way to Dubai, setting a new standard for speed and efficiency in cross-border trade.
First shipment from China to UAE via Pakistan
The inaugural shipment, comprising electronic goods, left Kashgar city in Xinjiang region of China and is en route to Dubai’s Jebel Ali Port, marking a significant milestone in the operationalization of the China-Pakistan Economic Corridor (CPEC).
This new service, which cuts the transit time from 30 days (via sea routes) to just 10 days, leverages Pakistan’s strategic geographical position as a transit hub between China and the Gulf states. The shipment will make the journey from Kashgar to Karachi in eight days, after which the goods will be transported by sea to Dubai in just two days.
The journey’s first leg culminated in Sost, Gilgit-Baltistan, where a ceremonial event was held to commemorate the launch. Senior officials from the Gilgit-Baltistan government, customs authorities, and the local business community gathered to mark this historic occasion. The event underscored the importance of the Khunjerab Pass, situated in the Karakoram Range, which connects Pakistan’s Gilgit-Baltistan region with China’s Xinjiang province. This pass, located at an elevation of over 4,600 meters, has historically been used for bilateral trade but is now set to play a larger role in facilitating regional trade via the TIR system.
TIR system, the international customs transit framework, streamlines cross-border trade by allowing sealed cargo to pass through multiple countries with minimal customs inspection, ensuring faster and more efficient movement of goods. The new service is expected to open up new trade opportunities, reduce logistics costs, and improve the overall efficiency of the supply chain, benefiting exporters and importers alike.
Most efficient route from China to the Gulf region via Pakistan
“This achievement signifies a major leap forward in the operationalization of CPEC, utilizing the shortest and most efficient route from China to the Gulf region via Pakistan,” said an NLC spokesperson. The launch also highlights the growing role of the Khunjerab Pass as a year-round trade gateway.
“This milestone also reflects a significant step toward ensuring year-round functionality of the Khunjerab Pass, a vital gateway for regional trade,” according to teh NLC statement. “The cargo container, after being transported via NLC trucks from Kashgar to Karachi, will embark on the sea leg of its journey to its final destination at Jebel Ali Port,” the statement informed.
The response from the local business community has been overwhelmingly positive. Local traders called the new service “a good omen for Pakistan’s economy,” emphasizing that it would benefit traders and communities across the region.
According to the Gilgit-Baltistan Collectorate of Customs, revenue collected from the Sost Dry Port during the first two quarters of fiscal year 2024-25 reached a record Rs9.5 billion ($34.87 million), reflecting the growing importance of the region as a trade hub.
With this historic launch, Pakistan is poised to strengthen its role as a key logistics corridor between Asia and global markets, positioning the country for greater economic integration and regional connectivity.
Additionally, Pakistan’s National Logistics Corporation (NLC) and Emirati multinational logistics company DP World have successfully shipped over 1,000 containers between Pakistan and Bangladesh since launching the first direct shipping route between the two countries in October 2024. This new maritime link has reduced transit times by more than 50% between Karachi and Chittagong, enhancing efficiency and streamlining trade between the nations.